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IMA: New Rules Enhance The UK's Position As A Key Fund Domicile

Wednesday 21 December 2011

The Investment Management Association (IMA) welcomes today’s introduction of a protected cell regime (PCR) for UK open-ended investment companies (OEICs).  The legislation ensures that the assets of each sub-fund in an OEIC umbrella fund are ring-fenced from the other sub-funds. This will mean that one sub-fund cannot draw upon the assets of another to cover its liabilities.

Julie Patterson, Director of Authorised Funds at the IMA said:

“The risk of a sub-fund ending up with more liabilities than assets is miniscule, but the new PCR removes the potential for cross liability between sub-funds. The PCR is therefore a further welcome step to improve investor confidence and to enhance the competitiveness of the UK as a key fund domicile.

“This, together with the launch next year of tax-transparent funds, cements the UK’s position as a fund domicile of choice.” 

- Ends -

Notes to Editors
The legislation can be found here.

For further information, please contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
Christina Bridge, Press Assistant, 020 7831 0898
Email: press@investmentuk.org

About the Investment Management Association
The IMA is the trade body for the UK's £4 trillion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Our purpose is to support and promote a commercially successful and growing UK investment management industry as we seek to improve the financial outcomes for customers - savers and investors.